Memorial Services, Incorporated (MSI) has three service departments (IT, Accounting, and HR) and two production departments (West and East). The usage data for each of the service departments for the previous period follow: IT Accounting HR IT Accounting 0% HR West East 20% 40% 40% 0% 10% 0% 10% 40% 60% 60% 20% The direct costs of the service departments in the previous period were $86,750 for IT, $99,000 for Accounting, and $112,500 for HR. Required: Use the reciprocal method to allocate the service department costs to the production departments. (Matrix algebra is not required.) Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Allocation IT Accounting HR West East Service department costs $ 86,750 $ 99,000 $ 112,500 $ 0 $ 0 IT allocation Accounting allocation HR allocation Total costs allocated $ 86,750 $ 99,000 $ 112,500 $ 0 $ 0

Memorial Services, Incorporated (MSI) has three service departments (IT, Accounting, and HR) and two production departments (West and East). The usage data for each of the service departments for the previous period follow: IT Accounting HR IT Accounting 0% HR West East 20% 40% 40% 0% 10% 0% 10% 40% 60% 60% 20% The direct costs of the service departments in the previous period were $86,750 for IT, $99,000 for Accounting, and $112,500 for HR. Required: Use the reciprocal method to allocate the service department costs to the production departments. (Matrix algebra is not required.) Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Allocation IT Accounting HR West East Service department costs $ 86,750 $ 99,000 $ 112,500 $ 0 $ 0 IT allocation Accounting allocation HR allocation Total costs allocated $ 86,750 $ 99,000 $ 112,500 $ 0 $ 0

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 19E: Refer to the data in Exercise 7.18. When the capacity of the HR Department was originally...

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Memorial Services, Incorporated (MSI) has three service departments (IT, Accounting, and HR) and two production departments (West and East). The usage data for each of the service departments for the previous period follow: IT IT 05 10% Accounting HR 8% 20% 10% Allocation Service department costs IT allocation Accounting allocation HR allocation Total costs allocated 0% Accounting HR The direct costs of the service departments in the previous period were $184,650 for IT, $100,000 for Accounting, and $113,500 for HR. $ Required: Use the reciprocal method to allocate the service department costs to the production departments. (Matrix algebra is not required.) Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. IT West East 40% 40% 60% 60% 40% 20% 0 $ Accounting 0 $ HR 0 $ West 0 $ East 0
Memorial Services, Incorporated (MSI) has three service departments (IT, Accounting, and HR) and two production departments (West and East). The usage data for each of the service departments for the previous period follow: IT IT Accounting 0% HR West East 20% 40% 40% Accounting 0% 0% 40% 60% HR 10% 10% 60% 20% The direct costs of the service departments In the previous period were $91,750 for IT, $119,000 for Accounting, and $162,500 for HR. Required: Use the step method to allocate the service department costs to the two production departments. Allocate HR costs first, followed by IT, and then Accounting. Note: Amounts to be deducted should be Indicated by a minus sign. Service department costs HR allocation IT allocation Accounting allocation Total costs allocated IT Accounting HR West East 91,750 S 119,000 $ 162,500 16,250 (162,500) 97,500 32,500 0 0 S 108,000 S 119,000 S 0 $ 97,500 S 32,500
Memorial Services, Incorporated (MSI) has three service departments (IT, Accounting, and HR) and two production departments (West and East). The usage data for each of the service departments for the previous period follow: IT Accounting HR West East IT -- 0% 20% 40% 40% Accounting 0% -- 0% 40% 60% HR 10% 10% -- 60% 20% The direct costs of the service departments in the previous period were $91,000 for IT, $116,000 for Accounting, and $155,000 for HR. Required: Use the step method to allocate the service department costs to the two production departments. Allocate HR costs first, followed by IT, and then Accounting. Note: Amounts to be deducted should be indicated by a minus sign. IT Accounting HR West East Service department costs $ 0 HR allocation IT allocation Accounting allocation Total costs allocated $ 0 $ 0 $ 0 $ 0 $ 0 Need help please
Bens Corporation has three service departments (Repairs, HR, and IT) and two production departments (M1 and M2). The following usage data for each of the service departments for the previous period follow. Repairs HR IT Repairs HR 10% 0% HR allocation IT allocation Total costs allocated Service department costs Repairs allocation 0% 10% IT 0% 20% M1 The direct costs of the service departments in the previous period were $40,000 for Repairs, $59,600 for HR, and $90,000 for IT. Required: Use the direct method to allocate the service department costs to the production departments. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) Repairs 40% 35% 20% M2 60% 35% 70% HR IT M1 M2
Bens Corporation has three service departments (Repairs, HR, and IT) and two production departments (M1 and M2). The following usage data for each of the service departments for the previous period follow. Repairs HR IT Repairs HR 0% Service department costs Repairs allocation HR allocation IT allocation Total costs allocated 10% 0% - 10% IT 0% 20% The direct costs of the service departments in the previous period were $92,000 for Repairs, $111,600 for HR, and $207,000 for IT. Required: Use the direct method to allocate the service department costs to the production departments. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) M1 40% 35% 20% Repairs M2 60% 35% 70% HR IT M1 M2
Bens Corporation has three service departments (Repairs, HR, and IT) and two production departments (M1 and M2). The following usage data for each of the service departments for the previous period follow. Repairs HR IT Repairs HR ON 10% ON Repairs allocation Total costs allocated Service department costs HR allocation IT allocation 10% IT 08 20% The direct costs of the service departments in the previous period were $76,000 for Repairs, $95,600 for HR, and $171,000 for IT. Required: Use the step method to allocate the service department costs to the production departments. Allocate HR costs first, followed by IT, and then Repairs. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) M1 M2 40% 60% 35% 358 20% 70% Repairs HR IT M2
Bens Corporation has three service departments (Repairs, HR, and IT) and two production depart- ments (M1 and M2). The following usage data for each of the service departments for the previous period follow. Repairs HR IT M1 M2 Repairs.. 0% 0% 40% 60% HR. 10% 20% 35% 35% IT 0% 10% 20% 70% The direct costs of the service Cepartments in the previous period were $20,000 for Repairs, $39,600 for HR, and $45,000 for IT.
Cordner Corporation has two production departments, P1 and P2, and two service departments, S1 and S2. Direct costs for each department and the proportion of service costs used by the various departments for the month of July are as follows: Proportion of Services Used by: Direct Departmentcosts S1 S1 S2 P1 P2 60,000 100,000 0.20 160,000 140,000 S2 P1 P2 0.700.10 0.2O 0.300.50 Under the step-method of cost allocation, the amount of costs allocated from S2 to P2 would be: Select one: a. $53,250. b. $62,500. c. $50,000 d. $88,750. SSSS
Cordner Corporation has two production departments, P1 and P2, and two service departments, S1 and S2. Direct costs for each department and the proportion of service costs used by the various departments for the month of July are as follows: Proportion of Services Used by: Department Direct costs S1 S2 P1 P2 S1 $ 72,000 0.70 0.10 0.20 S2 $ 157,000 0.20 0.30 0.50 P1 $ 214,000 P2 $ 179,000 Under the step method of allocation, the total amount of service costs allocated to producing departments would be: Multiple Choice $174,000. $178,600. $74,000. $229,000.
Cordner Corporation has two production departments, P1 and P2, and two service departments, S1 and S2. Direct costs for each department and the proportion of service costs used by the various departments for the month of July are as follows: Proportion of Services Used by: Department Direct costs S1 S2 P1 P2 S1 $ 71,000 0.60 0.10 0.30 S2 $111,000 0.10 0.40 0.50 P1 $171,000 P2 $151,000 Under the direct method of cost allocation, the amount of S1 costs allocated to S2 would be: Multiple Choice $0. $4,440. $11,100. $42,600.
Cordner Corporation has two production departments, P1 and P2, and two service departments, S1 and S2. Direct costs for each department and the proportion of service costs used by the various departments for the month of July are as follows: Proportion of Services Used by: Department Direct costs S1 S2 P1 P2 S1 $ 148,000 0.70 0.10 0.20 S2 $ 179,000 0.20 0.30 0.50 P1 $ 209,000 P2 $ 148,000 Under the step method of cost allocation, the amount of costs allocated from S2 to P2 would be: Note: Do not round intermediate calculations.
Cordner Corporation has two production departments, P1 and P2, and two service departments, S1 and S2. Direct costs for each department and the proportion of service costs used by the various departments for the month of July are as follows: Proportion of Services Used by: Department Direct costs S1 S2 P1 P2 S1 $ 148,000 0.70 0.10 0.20 S2 $ 179,000 0.20 0.30 0.50 P1 $ 209,000 P2 $ 148,000 Under the step method of cost allocation, the amount of costs allocated from S2 to P2 would be: Note: Do not round intermediate calculations. Multiple Choice $176,625. $89,500. $92,750. $102,000.